Have you ever wondered what portion of your own members’ mortgage business you can claim? Here’s a little formula to help you get close. Start with the number of accounts you have. Subtract 20% for business/youth/multiple account duplicities. This gives you the approximate number of households you serve. If you have a CRM or MCIF program you can probably get a more exact number on households. Subtract non-homeowners: 37%. Subtract those not likely to be in the purchase market: 92%. Subtract cash buyers: 23%.
Here’s a little mathematical sample:
- Accounts: 12,500 – 20%
- Households: 10,000 – 37%
- Homeowner Households: 6,300 – 92%
- Households in the Market: 504 – 23%
- Members needing a mortgage loan: 389
Even though the number is whittled down substantially, you should be left with a number that, if you converted into mortgage closings, would be a boom for your program. Compare this number with the number of originations you had last year. I’ll bet a 15% increase doesn’t look like such a stretch.
The next question you might ask is, “What can I do to make sure these Members come to my Credit Union for a mortgage?”
Marketing to customers who already know your Credit Union can typically be done without a lot of added expense. Use your internal resources to reach members with the good news of your mortgage program. Newsletters, website, social media platforms, onsite electronic signage, lobby posters, teller window posters, drive-thru receipt stuffers, statement stuffers and more can tout your competitive rates and easy home loan process.
Credit Unions have made great headway in mortgage market penetration over the last few years. When refinances dry up, we tend to retreat. We challenge you to proactively engage the market right under your nose.